Freight Startup Transfix in Talks to Go Public Via SPAC

(Bloomberg) -- Transfix, a logistics startup that operates a freight marketplace, is in talks to go public through a merger with a blank-check firm, Tuscan Holdings Corp. II, according to a person with knowledge of the matter.

Transfix and Tuscan are in exclusive negotiations, with terms yet to be finalized, said the person, who asked not to be identified because the discussions are private. No deal has been reached and it’s possible that talks could fall apart.

Tuscan shares rose as much as 6.9% on news of the potential deal, before paring that gain to 5.6% at 12:59 p.m. in New York.

”We are continuously engaged in exploring potential M&A opportunities,” a representative for Tuscan said in an emailed statement, declining to comment further. A Transfix representative declined to comment.

Transfix, founded in 2013, is led by co-founder and Chairman Drew McElroy, Chief Executive Officer Lily Shen and co-founder and Chief Technology Officer Jonathan Salama. The company was last valued at $800 million, according to PitchBook, and its investors include G Squared, TriplePoint Venture Growth, New Enterprise Associates, Canvas Ventures and Lerer Hippeau.

Tuscan, led by Stephen Vogel, raised $172.5 million in a July 2019 initial public offering and said at the time its initial focus would be a target in the cannabis industry, but wouldn’t be limited to an industry or geography. Another of Vogel’s SPACs, Tuscan Holdings Corp., said last month it signed a letter of intent to merge with electric-battery maker Microvast, confirming an earlier Bloomberg News report.

©2020 Bloomberg L.P.